Operations Management Case Analysis - Term Paper Example

Name: Course: Date: Operations Management Case Analysis 1. Explain the key benefit of the revised approach, and the reason for the benefit. Master Tag has come up with an alternative plan to manufacture and distribute tags and labels directly to the plant growers, as opposed to supplying them to the seed companies, which in turn sell the labels together with the seeds to the plant growers…

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The revised approach as devised by Master Tag is beneficial, since it will entail supplying the labels directly to the plant growers. The labels will be supplied in two batches, with one batch supplied earlier, and the second batch supplied later, depending on the amount of produce that the plant growers will have obtained during any particular season (Foster, 697). This being the case, the revised plan will ensure that Master Tag does not produce labels beyond the requirements of the plants growers at any particular season, since the production will be based on the quantity of produce that the plants growers have produced in that season. The plan is also beneficial because, the production of the labels will be occurring in two batches, ensuring that the plant growers will not experience any shortages of the labels, since they will already be having the first batch, as they wait for the second batch to be delivered (Foster, 697). This improves the system of communication between the company and the users of the labels, ensuring that the company produces the exact amount of labels, which the plant growers will need to use. This way, the revised plan will have guarded against over or under production of the labels, ensuring that the customers are fully satisfied. 2. Mster Tag has not yet decided to implement this plan. List the pros and cons you think should be considered. The pros that should be considered while introducing the plan include: Direct produce to consumer interaction This is the first benefit that this revised plan will introduce, since it will pave way for the producer, in this case Master Tag, to interact directly with the consumers, who in this case are the plant growers. The improved producer to consumer relationship is a vital concept of business, since it establishes an avenue through which the producer and the consumer will address all the issue involving their business, thus improve their understanding, while also fostering loyalty and goodwill (Sharp, 43). Direct producer to consumer relationships also fosters the process of innovation, since the producer will understand better the needs of the consumers, and therefore tailor made their products towards directly satisfying the unique needs of the consumers (Sharp, 45). This is contrary to the earlier plan, where the labels were first supplied to the seed companies, who in turn supplied them to the consumers. This is because, the producer would only depend on the information from the seed companies, thus may fail to meet the unique needs of each and every of the consumers, owing to the fact that the seed companies would order universal labels, while different plant growers would want the labels specifically made for them. Reduced price possibilities Secondly, the revised plan is advantageous to the company and to the plant growers, since it would enable a reduction in the price of the labels, now that they are delivered directly from the producer to the consumer, without being added the costs of the intermediary, in this case, the seed companies (Foster, 698). This plan is a double gain, since it allows the producer to sell directly to the consumer without the inconveniencies of
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